The "Saudi Arabia Loyalty Programs Market Intelligence and Future Growth Dynamics - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q3 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The loyalty market in Saudi Arabia is expected to grow by 15.4% on annual basis to reach US$842.5 million in 2025. In value terms, the loyalty market in the country has recorded a CAGR of 17.2% during 2020-2024. The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 13.0% during 2025-2029. Loyalty market in this region is expected to increase from US$730.3 million in 2024 to reach US$1.37 billion by 2029.

This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of end-use sectors and market segments in Saudi Arabia. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

The loyalty program environment in Saudi Arabia is experiencing a major change, influenced by technological advancements, shifting consumer preferences, and favorable government policies aligned with Vision 2030. Digital loyalty platforms are becoming the cornerstone of customer engagement, fueled by the rise of e-commerce, smartphone penetration, and fintech innovation. The shift toward tiered loyalty programs reflects the growing demand for personalized and value-driven rewards, particularly in retail. Additionally, fintech integration enhances loyalty ecosystems by introducing innovative and seamless rewards systems.

Data-driven personalization is emerging as a critical enabler for brands to deliver tailored experiences, while coalition programs are reshaping the loyalty landscape by fostering partnerships across industries. These trends will likely intensify over the next 2-4 years as technology adoption accelerates and consumer expectations evolve. Businesses that embrace these trends and invest in customer-centric, data-driven loyalty solutions will be well-positioned to build stronger, longer-lasting relationships with their customers in Saudi Arabia's dynamic and competitive market.

Growing Adoption of Digital Loyalty Platforms

Digital loyalty platforms are becoming increasingly popular in Saudi Arabia, driven by the country's rapid digital transformation. These platforms, including mobile apps and web-based solutions, allow customers to collect and redeem points, access exclusive offers, and engage with brands in real-time. For instance, STC Pay has integrated loyalty features into its digital wallet, enabling users to accumulate points for various transactions.

The e-commerce boom in Saudi Arabia, supported by high smartphone penetration and an expanding digital payment ecosystem, has significantly contributed to adopting digital loyalty platforms. Platforms like Noon and Amazon Saudi Arabia have implemented loyalty features such as cashback and discounts for frequent buyers. Additionally, government initiatives under Vision 2030, which emphasize digital transformation and cashless transactions, have created a conducive environment for digital loyalty programs. The tech-savvy younger population, a significant portion of Saudi Arabia's demographic, prefers convenient, tech-driven solutions over traditional loyalty cards.

In the coming years, partnerships between loyalty platforms and e-commerce or fintech players are expected to rise, creating integrated ecosystems. Brands will likely adopt Artificial Intelligence (AI) to offer personalized rewards based on consumer behavior. Traditional loyalty programs may phase out as digital solutions dominate the loyalty landscape.

Competitive Landscape and Regulatory Changes in Saudi Arabia's Loyalty Market

The competitive landscape in Saudi Arabia's loyalty market is vibrant, with a blend of dominant players and niche-focused startups shaping the industry. The moderately fragmented structure provides opportunities for collaboration, but market entry remains challenging due to regulatory compliance, consumer trust issues, and the need for technological investments.

Over the medium term, the market is expected to consolidate, with a focus on innovation and cross-sector partnerships. Regulatory changes, particularly in data privacy and digital payments, will continue to influence the competitive dynamics, ensuring a more transparent and consumer-friendly environment. To succeed in this dynamic market, businesses must remain agile, invest in technology, and align with the evolving regulatory framework.

The loyalty market in Saudi Arabia is competitive, with a mix of established local players, global companies, and fintech startups vying for market share. Prominent players such as STC Pay, Saudia Airlines' Alfursan program, and Jarir Bookstore's loyalty initiatives dominate specific sectors, including telecom, travel, and retail. At the same time, global brands like Amazon, Saudi Arabia and Carrefour bring international expertise and resources, adding further competition. Fintech startups such as Hala and Geidea are rapidly entering the market with innovative digital loyalty solutions, targeting tech-savvy younger consumers.

The market is moderately fragmented, with different players focusing on specific verticals. While dominant players control significant portions of their respective industries (e.g., telecom, travel, and large retail chains), smaller players in niche markets such as luxury retail, e-commerce, and local service industries are also thriving. This diversity balances a few large players and numerous smaller, specialized companies, fostering collaboration and competition.

Expected Changes Over the Next 2-4 Years

• While the market is moderately fragmented, consolidation is expected as larger players acquire smaller firms to expand their customer base and technological capabilities.
• Fintech companies will continue to grow and diversify their loyalty offerings, intensifying competition, especially in digital wallets and payment-linked loyalty programs.
• More cross-sector partnerships, particularly between retail, e-commerce, and travel, are expected to provide comprehensive coalition loyalty programs.
• As data-driven marketing becomes a priority, companies that invest in AI and analytics to deliver hyper-personalized rewards will gain a competitive edge.
• Stricter regulations on data privacy and transparency may level the playing field, reducing unfair practices and protecting consumers while increasing business operational requirements.

Key Attributes:

Scope

Saudi Arabia Retail Sector Spend Value Trend Analysis

• Ecommerce Spend
• POS Spend

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Value Accumulated and Value Redemption Rate of Loyalty programs in Saudi Arabia

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

• Loyalty Schemes
• Loyalty Platforms

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type

• Points programs
• Tier-based programs
• Mission-driven programs
• Spend-based programs
• Gaming programs
• Free perks programs
• Subscription programs
• Community programs
• Refer a friend program
• Paid programs
• Cashback programs

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Channel

• In-Store
• Online
• Mobile

Saudi Arabia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model

• Seller Driven
• Payment Instrument Driven
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Retail

• Diversified Retailers
• Department Stores
• Specialty Stores
• Clothing, Footwear & Accessories
• Toy & Hobby Shops
• Supermarket and Convenience Store
• Home Merchandise
• Other

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

• Card Based Access
• Digital Access

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

• B2C Consumers
• B2B Consumers

Saudi Arabia Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type

• Free
• Free + Premium
• Premium

Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case

• Analytics and AI Driven
• Management Platform

Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner

• In House
• Third Party Vendor

Saudi Arabia Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

• Cloud
• On-Premise

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

• Software
• Services

Saudi Arabia Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms

• Custom Built Platform
• Off the Shelf Platform

Saudi Arabia Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

• By Age Group
• By Income Level
• By Gender

For more information about this report visit https://www.researchandmarkets.com/r/w0xw3

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